Junior Bonds FAQs

When they turn 18, the child named on the bond will take over managing it. They'll be able to give us instructions, which means they'll be able to tell us they'd like to withdraw money, switch funds (if another fund is available) and extend the payment term.

Before they turn 18, we'll only be able to accept these instructions from the child's parent or legal guardian. If that's not you, we'll ask you for their details when you open the bond.

Please note, if the payment term hasn't ended when they turn 18, they may be able to take money out but might need to pay tax on any money they've made as well as a £50 withdrawal fee.

Got the answers you need? Visit the main Junior Bonds page to open a Junior Bond

At the end of the payment term, the child named on the bond (or their parent or legal guardian if they're not yet 18) will have three choices:

• Extend the term and keep making payments into the Junior Bond. As the initial payment term has ended, they'll still be able to take money out at any time without paying a penalty or tax on any growth.
• Leave the money where it is but stop paying money in. The money in the bond will stay invested in a tax-exempt fund. It can be taken out at any time without penalty and without tax being due on any growth.
• Take some or all of the money out.

You can find out more about cashing in a Junior Bond in the “Withdrawals and closing the Junior Bond" section of the Important Information Booklet.

Yes, but you may have to pay a fee and tax on any money the bond has made.

If the child named on the bond is under 18, only their parent or legal guardian will be able to withdraw money. If they have turned 18, only the child can do so. We'll ask you to supply the details of the parent or legal guardian when you open the bond.

• If you close your Junior Bond in the first year, it will have no value so you won't get any money back
• If you close it from year two up to year 10, you will get back the policy value but you may need to pay tax on any growth. You'll also be charged a £50 early withdrawal charge

You can find out more about cashing in a Junior Bond in the “Withdrawals and closing the Junior Bond" section of the Important Information Booklet.

If you’re 18 or over you can open a Junior Bond for any child under 16.

Got the answers you need? Visit the main Junior Bonds page to open a Junior Bond

Contact us on 0808 196 2625 to ask for an extension form. We may even be able to extend your bond over the phone.

Take a look at our guide to extending a Junior Bond.

You can choose to invest in either the Family Sovereign Fund or the Family Charities Ethical Exempt Fund.

You can find out how these funds invest your money by clicking the links above to download the fund factsheets. Or you can read about them in the important information booklet.

Got the answers you need? Visit the main Junior Bonds page to open a Junior Bond

Between 10 and 25 years.

You choose how long you'll invest for (the "payment term") when you open the bond, so you can decide how old the child needs to be when they can access the money.

The payment term needs to be in complete years, so you're not able to say 11 years and three months for example.

Got the answers you need? Visit the main Junior Bonds page to open a Junior Bond

You can choose to invest either

• monthly, with payments from £15 to £25
• yearly, with payments from £165 to £270

The upper limit is set by the UK government.

Please note any gift options apply to monthly payment options only. Please call us on 01273 062555 for more details.

If you already pay into another qualifying policy, you need to make sure that paying into a Junior Bond won't take you over the total payment limit for this type of policy, which is £3,600 a year (the Junior Bond is a qualifying policy).

Got the answers you need? Visit the main Junior Bonds page to open a Junior Bond

• An initial set up charge of £60 will be taken from your first year's payments. We also apply an annual management charge of 1.5% of the fund value.
• A charge will be taken for the child's life cover whenever the current value of the Junior Bond is lower than the sum assured. This charge is taken yearly, on the anniversary of the bond being opened. The charge we make for life cover depends on the child's age and the current value of the bond when we take the charge.
• Expenses are also deducted from the Family Sovereign fund. These can change but they are currently estimated to be no more than 0.6% each year.
• If the policy is cashed in between years two and 10, the child will receive the policy value less a £50 charge. Tax may also be payable.

See "What happens at the end of the payment term?" in the important information document for details about who can cash in a Junior Bond.

Got the answers you need? Visit the main Junior Bonds page to open a Junior Bond

No. The Junior Bond is invested in a tax-exempt fund, although income received by the fund may be taxed before we receive it.

The money the child gets when the bond matures (the payment term ends) won't be subject to Income Tax or Capital Gains Tax, as long as you've made payments for at least 10 years. The tax advantages of the Junior Bond depend on your individual circumstances and the child's, and they could change in the future.

Got the answers you need? Visit the main Junior Bonds page to open a Junior Bond

You have 30 days to cancel the Junior Bond.

If you'd like to cancel, please complete the cancellation notice which was send to you in your Welcome Pack. Any money you have paid in will be returned to you.

Got the answers you need? Visit the main Junior Bonds page to open a Junior Bond

OneFamily's Junior Bond is a tax-exempt savings plan.

This type of savings product is only available from friendly societies, like OneFamily.

Money you pay into TESPs is invested in tax-exempt funds, which means that you won't pay any Income Tax and Capital Gains Tax on any money you make, as long as you keep paying in regularly and don't take your money out within 10 years.

Got the answers you need? Visit the main Junior Bonds page to open a Junior Bond

Yes, TESPs are covered by the Financial Services Compensation Scheme (FSCS).

This means you may qualify for compensation from the FSCS if we fail or go bankrupt.

Circumstances vary, but most types of long-term investments like the Family Bond are covered for 100% of the claim with no upper limit.

If you’d like more information about the FSCS, please visit www.fscs.org.uk.

Got the answers you need? Visit the main Junior Bonds page to open a Junior Bond